Roundup: Freeland’s non-contradictory position on energy

On Tuesday, Chrystia Freeland gave a speech at the Brookings Institute in Washington, DC, and she outlined some fairly ambitious economic policy that involves a retrenching of keeping our supply chains within fellow democracies, because relying on regimes like Russia and China can prove costly in the end—particularly if you look at what’s happening in Europe with their energy crisis. It also means accelerating the green energy transition, which is also happening at a faster pace. But what got a bunch of people in Canada curious was Freeland talking about fast-tracking energy and mining projects to help Europe with that transition. But there is nuance there, however.

The CBC in particular got excited because they claimed to see some kind of contradiction with what Freeland was saying with the fact that the government won’t do anything to fast-track LNG projects, and that we somehow sent German Chancellor Olaf Scholz packing when he came looking for LNG. Erm, except he didn’t, because he knows as well as anyone that we don’t have the infrastructure for LNG, and so he came looking for hydrogen, which he got. But the CBC’s Vassy Kapelos did an interview with Scholz, where she spent half of it badgering and hectoring him about LNG until he said that he would like Canadian LNG if we had it, and they kept bringing that clip up in isolation. But again, Scholz knows we don’t, that it would take too long to build, and frankly that the market case isn’t there. As I wrote in this column, the timelines for these projects don’t make sense, and frankly, the LNG projects that have been on the drawing table for decades never took off because they couldn’t get commitments from buyers for the project. And while Kapelos was hectoring and badgering natural resources minister Jonathan Wilkinson yesterday about LNG, and insisting that the Americans can get theirs to export and why not us, the difference is that they have been converting LNG import terminals for export, which we can’t do. We have one import terminal in New Brunswick, and it would take two years to retrofit, assuming they could get a steady supply of gas, which they don’t have without importing. That’s why it’s an import terminal. But apparently there are no producers at Power & Politics who can pick up the phone and call a gods damned energy economist who can explain these things before they talk to the minister and not waste everyone’s time.

So no, Freeland didn’t contradict anyone. They are putting a focus on mining critical minerals in Canada—Trudeau made such an announcement earlier in the week. They are focusing on hydrogen, some of which may come from natural gas, which again, is not LNG, but is an energy project. “Energy project” is not simply code for LNG, guys. It’s only slightly alarming that the gods damned public broadcaster can’t be bothered to do their homework to put things in context before they start hyperventilating, but this is apparently the era we’re living in.

Ukraine Dispatch, Day 231:

Ukrainian forces say that they have recaptured five settlements in the southern Kherson region, while the Zaporizhzhia nuclear plant has lost external power for the second time in five days, which puts stress on the cooling systems.

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Roundup: The PM is staying put this year

It is the National Day for Truth and Reconciliation, otherwise known as “Orange Shirt Day,” after Phyllis Jack Webstad told the story about going to residential school with a new orange shirt that she was so proud of, and was forced to remove it upon arrival, which became a symbol of her forced assimilation that the school enforced. Something to reflect on over the day.

It also sounds like the prime minister has learned his lesson about his visibility, and whereas his intention last year was to step back and not make it about himself, he spent the day heading to Tofino for a weekend off with his family, which became a minor scandal. So today he’ll be attending ceremonies and events both in the Niagara Region, as well as here in Ottawa, and conspicuously not taking off with his family.

Ukraine Dispatch, Day 218:

Russia is claiming to recognise the “independence” of two of the regions in Ukraine subjected to sham referendums this past week, as a prelude to annexation. President Volodymyr Zelenskyy, in response, has made a direct appeal to Russians that they don’t have to die in Ukraine, like 58,000 have so far, and called on ethnic minorities in Russia to resist mobilization. Further north to those regions, Ukrainian forces have nearly encircled the city of Lyman, and are preparing to trap Russian forces therein. One of Zelenskyy’s advisors says that the sham referendums change nothing, and that they will liberate those territories, with military force if necessary. Meanwhile, Ukrainian children are trapped in Russian camps after promoting them as a summer break for children in occupied territories, so that’s going well.

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QP: Freeland steps up to call out Poilievre’s false tax claims

While the prime minister was still at the UN General Assembly, his deputy was present today, so it was hoped we would get a better series of exchanges. Fingers crossed. Poilievre led off with his same talking points about the share of paycheques being devoted to housing, and demanded that “tax hikes” be cancelled. In response, Chrystia Freeland responded by reading a script about the role of the opposition in a Westminster system, but whatever point she was trying to make got lost. Poilievre switched to English to repeat same question, and Freeland noted that since EI premiums were mentioned, she pointed out that when Poilievre was the employment minister, premiums were $1.81, while they will soon be $1.61. Poilievre retorted with combined CPP and EI figures to show that they are higher overall, and Freeland lectured him that EI and CPP are deferred income, they don’t go to general revenue, they are the safety nets for Canadians. Poilievre insisted that the government was trying to raise CPP so its surplus could go to general revenue, and decried inflation and these so-called tax increases. Freeland said that it was irresponsible to talk down the economy, but Canada is better positioned than any country in the world. Poilievre insisted that thirty-year-olds in their parents’ basements would disagree with the rosy assessment of the economic picture, and Freeland pointed out that the government has measures for people in need, while the Conservatives have irresponsible plans, like investing in Bitcoin.

Yves-François Blanchet led for the Bloc, and he congratulated Poilievre and gave a shoutout to Alain Rayes before saying that the prime minister should take Roxham Road on his way back to Canada because it is “faster.” Freeland read a response about respecting the rights of asylum seekers, and working with the Americans on border obligations including the Safe Third Country Agreement. Blanchet suggested that when Trudeau returns, he sing his responses before he demanded the Safe Third Country Agreement be suspended and Quebec be given its own immigration powers. Freeland pointed out that Quebec does get to control its immigration levels.

Jagmeet Singh rose for the NDP, decrying rising prices, while grocery profits have increased since 2020. Freeland assured him they are ensuring that big businesses pay their fair share, including higher corporate taxes, the pandemic dividend tax for banks and insurance companies, and the new luxury tax. Singh repeated the question in French, trying to introduce the term “greed-flation,” to which Freeland repeated her response.

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Roundup: The funeral in London, and the memorial in Ottawa

The funeral service for the Queen went ahead in Westminster Abbey yesterday, before she was laid to rest at Windsor Castle. Canada had one of the largest contingents there, including horseback Mounties leading the procession (and perhaps that is all the Mounties should be after they are dismantled). I will note that it was amusing how many UK and American outlets were confused by the presence of Sandra Oh at the event as part of the procession of honours recipients, along with Mark Tewksbury to represent Canada. A non-scandal has also been erupting in certain media outlets where the prime minister *gasp!* sang at a piano in his hotel lobby a couple of nights ago. *yawn*

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In Ottawa, the national memorial ceremony for the Queen took place in Christ Church Cathedral down the street from Parliament Hill, and as attended by most MPs and senators, with former Governor General Adrienne Clarkson and former prime minister Brian Mulroney speaking (and yes, there was a public appearance by the Canadian Secretary to the King). It also featured a couple of musical interludes, including Rufus Wainwright singing Leonard Cohen’s Hallelujah, which is probably really appropriate for a memorial for the Queen (seriously, guys, it’s a song about sex), but it was a lovely service nevertheless.

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Ukraine Dispatch, Day 208:

A Russian missile struck 300 metres away from the Pivdennoukrainsk nuclear plant in southern Ukraine, so that’s concerning.

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Roundup: Getting better at plain-language explainers

Because this is the age of disinformation, it’s good when institutions start recognising that and offering plain-language explainers to help dispel the falsehoods that are swirling—especially when those falsehoods are being spread by sitting MPs and leadership candidates for political parties. In this case, it’s the Bank of Canada, and the notion of whether they printed money during the pandemic. They didn’t, and they had explainers on their site before, but this is much more accessible, which is really necessary right now—particularly given that the government can’t communicate their way out of a wet paper bag, which makes the job of defending institutions even harder (especially as the media is pretty much useless in this endeavour as well, too content to simply both-sides everything).

Of course, the replies to this thread are an absolute tire fire, so we’re nowhere near out of the woods yet, but it’s a good first step that needs to happen. (And listen to Captain Pike when you get tempted to read the comments).

Ukraine Dispatch, Day 183:

The Zaporizhzhia nuclear plant was knocked off of the Ukrainian power grid after a fire damaged a transmission line, raising fears that we could be headed toward another Chernobyl-like disaster. (Incoming power is needed for the reactors’ cooling systems, but there are some back-up power supplies). It was later re-connected, but this remains a problem, and radiation from such a meltdown could spread across Europe under the right conditions. Meanwhile, Putin is ordering a major troop replenishment after suffering heavy losses in the fighting in Ukraine.

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Roundup: Inflation starts to cool

The CPI figures were released yesterday morning, and the headline number has cooled from its peak, and in July was running at an annualized rate of 7.6 percent, the decrease largely being driven by lower gasoline prices. Of course, there are still plenty of other drivers that are keeping it high, some of which are things like food (largely being driven by factors like climate change), hotel stays, and airline charges. But rather than exploring what these drivers are, most of the coverage of the day was focused on the usual wailing and gnashing of teeth that prices are high and demands for the government to do something about it, which, short of wage and price controls—which don’t really work—they can’t do much about. And no, “just give everyone money” is not a solution because that drives demand further. Same as tax cuts or breaks, and in fact, increasing taxes is generally a good way to dampen inflation. Regardless, there is a real incurious narrative to this in the media, which is not surprising, unfortunately.

Meanwhile, here is Kevin Carmichael’s hot take on the figures, while Bank of Canada governor Tiff Macklem took to the pages of the National Post to offer some reassurance that the Bank is on the case. Economist Stephen Gordon explains the data here on video. Heather Scoffield warns that even if inflation peaked there are too many factors keeping it high for some time to come. And here is a look at the StatsCan analysts who compile the inflation data.

Ukraine Dispatch, Day 175:

There was another explosion at an ammunition depot at a military base in Russian-occupied Crimea, and the Ukrainian government will neither confirm nor deny involvement, though they are mockingly calling it “demilitarization,” as a play on Putin’s justification for invading Ukraine.

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Roundup: A deal to ship grain?

We’re now in day one-hundred-and-fifty of Russia’s illegal invasion of Ukraine, and an agreement has been signed that will allegedly allow Ukrainian grain to flow again from their Black Sea ports. Allegedly. No one really trusts Russia to actually live up to their end of the bargain, but we’ll see. Apparently one of the conditions to this agreement is that Ukraine doesn’t raise the issue of the grain that Russia stole from them, so we’ll see what happens from here. Meanwhile, CBC has a video package of the past week in the war.

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Roundup: Trying for a left-wing populist narrative

It’s day one-hundred-and-forty-nine of Russia’s invasion of Ukraine, and Russian forces have been pounding Kharkiv, mostly by randomly shelling residential areas to inflict civilian casualties. But as this shelling takes place, the head of MI6 in the UK says that their analysis shows that Russia’s army is nearly exhausted, and that this will open up opportunities for Ukrainian forces to counter-attack in the coming weeks. Meanwhile, Turkey says that Russia and Ukraine are about to sign a deal that will re-open Black Sea ports and allow grain shipments to pass through again, and hopefully avert the threat of famines (and likely lower world grain prices). There are still a lot of questions—including whether Russia can actually be trusted—but we’ll see what happens in the coming days.

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Closer to home, Jagmeet Singh is trying to play the populist card, and it’s just laughable. It’s like the satire of a populist’s talking points (not that the NDP hasn’t morphed itself from a principled left-wing party to a left-flavoured populist one more than a decade ago). Like Singh and his inner circle looked at Pierre Poilievre’s traction and said “get me a piece of that action,” so they tried to ape his talking points. It’s risible, and it’s a sign of the intellectual vacuum at the centre of our political parties (and no, Liberals, you don’t get to be smug about this one either as your party can’t communicate their way out of a wet paper bag).

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There are no “Ottawa elites” who are “enraged” by your suggestion. Yes, it got a bunch of scorn from, well, everyone because the last thing you want to do when you’re facing high inflation is to just give everyone even more money. Targeted help, sure, but social assistance and disability are provincial programmes, whereas the Canada Child Benefit is too broad a programme that it has been considered stimulus by the government and every credible economist, which is the last thing you want right now. The GST credit can maybe be a vehicle as it’s more targeted, but you need to be specific about that. As for the notion that corporate price gouging has caused inflation is flat-out wrong (even if it has contributed in a small way). Taxing oil companies won’t solve inflation, and an “excess profit tax” is a fraught move because it gets very tricky to come up with a workable definition of “excess,” particularly given the fact that a) the economy is overheated so of course businesses are going to be making more profit, and b) the world price of oil has more to do with supply constraints and capacity constraints for refining, so just taxing it more doesn’t actually solve any problems. But this kind of ham-fisted economic illiteracy does nothing for Singh’s credibility, and just drags the discourse even further down.

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Roundup: Standing for the Emergencies Act inquiry

It’s now day one-hundred-and-twenty-five of Russia’s invasion of Ukraine, and Russian long-range bombers struck a shopping mall in Kremenchuk in central Ukraine that had over a thousand people inside, leaving 13 dead and over 40 injured. Further east, Russians are now advancing on Lysychansk, but because it is higher up the river banks, it is a more defensible position for Ukrainian forces, and that could tie up Russian forces for months.

President Volodymyr Zelenskyy met with G7 leaders by video, and asked for more modern air defences, as well as even more sanctions as the ones that are in place are still not having enough of an effect. Zelenskyy also asked for assistance in unblocking Ukrainian ports so that they can get grain ships in, but this will mean de-mining work that could take weeks or months. Russia, meanwhile, looks set to default on its foreign debt for the first time since the Bolshevik revolution, and here is an explainer of what that could mean.

Closer to home, Justice Paul Rouleau, heading up the public inquiry into the invocation of the Emergencies Act, has released the list of who he has granted standing to hear from, and lo, the Conservative Party is not on it. Citing precedents from previous inquiries like Gomery, Rouleau has basically concluded that the Conservatives had nothing substantive to add, other than to whinge that the Liberals were mean to them about their support for the occupation, and he’s not interested in partisan point-scoring.

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Roundup: Inviting anti-vaxx organisers onto the Hill

It’s day one-hundred-and-twenty of Russia’s invasion of Ukraine, and no news out of Severodonetsk is presumed to be good news. That said, Russian forces have captured three other villages in the region, near the city of Lysychansk, which is across the river from Severokonetsk, so there is still movement in the region. There is optimism in the country, however, that their bid to join the EU will pass to the next stage during a summit this week. President Volodymyr Zelenskyy, meanwhile, addressed University of Toronto students, and called on them to pressure governments to provide more aid to Ukraine.

Closer to home, a group of Conservative MPs, including leadership candidate Leslyn Lewis, hosted a trio of anti-vaxxer extremists and occupation organisers ahead of their planned Canada Day protests, and they did it within one of the Parliamentary office buildings just off of the Hill. Included in the group were a former Reservist being charged for a video promoting the occupation while in uniform, a former Trump advisor, and a former spokesperson for the occupation. And in case it’s not clear, they’re no longer talking about vaccine mandates, which have pretty much ended everywhere, but about regime change, and Conservatives are condoning it, if not outright encouraging it by saying “you have allies.” That’s not good. It’s especially not good when they’re talking about civil war in their discourse. Oh, and Candice Bergen’s office was aware this was going on, and did nothing to shut it down. It’s just unbelievable how clueless they are around this issue, when there is real potential for these violent online narratives to manifest into a real-world attack.

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